r/PeterExplainsTheJoke 9h ago

Meme needing explanation Petah?

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u/BigWhiteDog 5h ago

<negative interest rates How does that work? I've heard the term but don't understand how that would work.

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u/ChocolateNo3010 5h ago

As I understand it for savings, you are charged for keeping money in a bank account, so rather than getting interest you lose money.

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u/VicariousInDub 5h ago

Wouldn’t that just lead to everyone running to the banks and trying to take their money out and therefor basically ruin the banking system?

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u/Fn_Spaghetti_Monster 3h ago

Just to add, bank typical only have to actual keep 5-10% of the money you deposit "on hand". The other 90% they turn around lend out to someone else.